please advise if this can be done by EOD on tomorrow
Shockwave Manufacturing, EIN 57-1234567, was organized on January 1, 1990. Shockwave manufactures electrical components. Its business activity code is 334410. They are located at 1234 Green Wire Lane, San Jose, CA 95107. Shockwave’s preferred stock is held by 17 different shareholders, none of whom own more than 10% of the stock of the company. Shockwave’s two officers each own 50% of the company’s common stock. June Rivers is President of the company. Her compensation is $75,000. June’s husband, Travis Rivers is Vice-President. His compensation is $66,350. Shockwave paid a total of $46,600 of dividends to its shareholders this year. During the year, Shockwave made federal estimated tax payments totaling $15,800. Shockwave’s accrual-based financial statements are shown below. Shockwave Manufacturing, Inc. Comparative Balance Sheet December 31, 2018 Assets January 1 2018 December 31 2018 Cash $ 40,320 $ 38,143 Notes Receivable 40,400 32,680 Accounts Receivable 236,390 208,690 Inventories (at lower of cost or market) 155,736 218,241 Prepaid Federal Taxes - 4,690 Investment in Municipal Bonds 27,900 27,900 Investments 45,000 45,000 Land 98,700 98,700 Building 182,432 206,379 Machinery and Equipment 207,450 207,450 Accumulated Depreciation (89,988) (128,045) Total Assets $ 944,340 $ 959,828 Liabilities and Stockholder's Equity January 1 2018 December 31 2018 Short-term Bank Loans $ 67,500 $ 56,250 Accounts Payable 187,646 164,882 Accrued Expenses 11,054 12,629 Bonds Payable 200,000 200,000 Preferred Stock 160,000 160,000 Common Stock 180,000 200,000 Additional Paid in Capital 54,000 83,000 Retained Earnings (unappropriated) 84,140 83,067 Total Liabilities and Stockholder's Equity $ 944,340 $ 959,828 Shockwave Manufacturing, Inc. Income Statement For the year ended December 31, 2018 Sales 1,896,798 Sales Returns (224,054) $ 1,672,744 Cost of Goods Sold (1,351,371) Gross Profit $ 321,373 Operating Expenses: Officer's Salaries $ 141,350 Salaries and Wages 40,188 Repairs 2,214 Property Taxes 4,200 Payroll Taxes 11,398 Depreciation 6,068 * Supplies 7,130 Advertising 29,033 Meals 2,000 Other administrative expenses 10,300 (253,881) Net Operating Income $ 67,492 Other Income: Dividends from domestic corporations (15% ownership) $ 3,600 Interest Income ($950 from municipal bonds) 3,033 6,633 Other Deductions: Interest Expense $ 11,588 Charitable Contributions 5,000 Legal and Professional Fees 900 (17,488) Net Income before Federal Income Tax $ 56,637 Less: Federal Tax Expense (11,110) Net income $ 45,527 *Assume Form 4562 has been correctly filled out and that $8,048 of depreciation expense is the amount of tax depreciation. Prepare Shockwave’s Form 1120, Form 1125-A, Form 1125-E, and Schedule G. Be sure to complete an excel or word file detailing any “attach statement” items. If information is not provided you may make assumptions or leave blank. Form 1125-A (Rev. November 2018) Form 1125-A (Rev. November 2018) Department of the Treasury Internal Revenue Service Cost of Goods Sold ▶ Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065. ▶ Go to www.irs.gov/Form1125A for the latest information. OMB No. 1545-0123 Name Employer identification number 1 Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . 1 2 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Additional section 263A costs (attach schedule) . . . . . . . . . . . . . . . . 4 5 Other costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . 5 6 Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . 6 7 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return. See instructions . . . . . . . . . . . . . . . 8 9a Check all methods used for valuing closing inventory: (i) Cost (ii) Lower of cost or market (iii) Other (Specify method used and attach explanation.)